Novel methods, techniques, or strategies that banks and other financial institutions can or could use to detect illicit activity involving digital assets are the focus of a comment call issued Monday by the Treasury Department.
Comments are due by Oct. 17 (about 60 days after publication in the Federal Register.)
The agency released the comment call as required by the 2025 “GENIUS Act” (which stands for “Guiding and Establishing National Innovation for U.S. Stablecoins Act”). President Donald Trump (R) in July signed the legislation into law. The law is designed to help “pave the way” for U.S. leadership in private digital currency, according to the White House.
The Treasury’s comment call, it said, in particular seeks insights about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring.
“Innovative tools are critical to advancing efforts to address illicit finance risks but can also present new resource burdens for financial institutions,” Treasury said in a press release. “As required by the GENIUS Act, Treasury will use public comments to inform research on the effectiveness, costs, privacy and cybersecurity risks, and other considerations related to these tools.”
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